It has been 33 years since Denmark commissioned the world’s first offshore wind farm. Now we take a large new step as a wind nation. Today marks the beginning of potentially 6 new offshore wind farms in Denmark, as the tenders are published.
With tenders of this magnitude, Denmark enters a completely new chapter. The green power produced will be used not only for Danish consumption, but also for export to our neighboring countries and for green hydrogen production. The offshore wind farms can deliver large amounts of green energy and thousands of jobs. It is an important step towards Denmark becoming the green power house of Europe, contributing to the green transition, our common European security, and independence from Russian gas.
Today the Danish Energy Agency has published the tender of 6 offshore wind farms. The tendered wind farms are located in the areas: North Sea I, Kattegat, Kriegers Flak II, and Hesselø. The tenders follow the political agreement on tender frameworks from the spring of 2023.
The offshore wind farms must deliver at least 6 GW, and as a new element, there will be freedom to establish as much offshore wind as possible on the tendered areas (with the exemption of Hesselø with a max. capacity of 1.2 GW). If the market utilizes this freedom to optimize the usage of the areas, it could result in the construction of 10 GW offshore wind or more. While some of the energy can be used in Danish and European households, the energy can also support Denmark’s potential for green hydrogen export, that can be used for the transition of e.g. transport and industry. This is in line with the political agreement made in the beginning of April on the financial framework for hydrogen infrastructure.
Finally, we are able to publish the biggest offshore wind tender in Danish history. With hundreds of wind turbines, we are insuring ourselves against Putin’s black gas, and as of today Denmark is one large step closer to becoming Europe’s green power house. When the wind turbines are operating, we can cover all of Denmark’s power consumption with green electricity – and we can produce hydrogen and green fuels for ships and planes. It is projects of this scale that can make a big, green difference for the climate and our security. Not just for Denmark, but for all of Europe, says Minister for Climate, Energy, and Utilities, Lars Aagaard
Now it is up to the market
We have paid close attention to the input from the market ahead of the tenders. Now it is up to the market to bid on and realize the projects. Companies have to place their bids on wind farms with the price of what they are willing to pay every year to the Danish state over a 30-year period. Each winner will win the right to construct offshore wind in the designated areas. Additionally, the Danish state will be co-owners of 20 pct. of the established offshore wind farms.
Now it is up to the market to take part in Denmark’s next big wind adventure. The next chapter will thus be written and carried out by the market – it is the market that must bring these tenders across the finish line” says Minister for Climate, Energy, and Utilities, Lars Aagaard.
Construction of an offshore wind farm of this scale brings massive investments and thousands of green jobs. An offshore wind farm with 1 GW capacity is expected to require capital investments of appr. DKK 16 billion, and, according to calculations from market actors from 2020, appr. 9,500 workers. Not all of these jobs will be in Denmark, but the 6 GW offshore wind can contribute substantially to employment across Denmark – especially in the construction phase.
Key facts:
- The 6 GW are tendered with an option of overplanting. This means, that there is freedom to established more than the minimum capacity of 6 GW – potentially 10 GW or more.
- Denmark’s operating offshore wind farms currently have a capacity of 2.7 GW.
- It is estimated, that a 1 GW offshore wind farm requires capital investments of appr. DKK 16 billion.
- A number of requirements will be implemented in order to ensure increased sustainability and social responsibility in the projects.
- The 6 GW will be tendered without state subsidies and with a yearly concession payment. This means, that the bidders will participate in the tenders by bidding a yearly concession payment to the Danish state across a 30-year period, for the right to use the seabed.
- The concession payment is combined with the Danish state co-owning each of the tendered offshore wind farms with a minority ownership of 20 pct.
One-pager on 6 GW tenders.pdf
One-pager on sustainability requirements.pdf